Compensation for Exchange of Local Traffic Sample Clauses
The "Compensation for Exchange of Local Traffic" clause defines how parties will compensate each other for the exchange of local telecommunications traffic between their networks. Typically, this clause outlines the rates, billing methods, and settlement procedures for calls that originate and terminate within the same local calling area but are routed between different service providers. For example, it may specify per-minute charges or reciprocal compensation arrangements. The core function of this clause is to ensure fair and transparent financial arrangements between carriers, preventing disputes and promoting efficient interconnection.
Compensation for Exchange of Local Traffic. The Parties will pay each other reciprocal compensation for the Transport and Termination of all Local Traffic exchanged between the Parties in accordance with the rates set forth in Appendix C attached to this Agreement and made a part hereof. Charges for the Transport and Termination of non-local traffic shall be in accordance with the Parties’ respective intrastate or interstate access Tariffs, as appropriate, if any, or as otherwise may be agreed upon by the Parties. The Parties will develop an initial factor representative of the share of traffic exempt from compensation. This factor will be updated quarterly in like manner or as the Parties otherwise agree. Once the traffic that is exempt from compensation can be measured, the actual exempt traffic will be used rather than the above factor.
Compensation for Exchange of Local Traffic. The Parties shall assume that Local Traffic originated by or terminating to the Parties’ end user customers is roughly balanced between the Parties. Accordingly, the Parties agree to absorb the costs associated with termination of EAS traffic.
Compensation for Exchange of Local Traffic. IV-2 3.3 Tandem Switching Services (Transiting) V-3
Compensation for Exchange of Local Traffic